The Nigerian Naira continues to weaken against the U.S. dollar, sliding to ₦1,629/$ in the Nigerian Foreign Exchange Market (NFEM) as of April 4, 2025. This represents a ₦29 depreciation from the ₦1,600/$ recorded just a week earlier, according to data released by the Central Bank of Nigeria (CBN).
Similarly, the Naira depreciated in the parallel market, trading at ₦1,570/$, down from ₦1,565/$ last weekend. This development widened the gap between the official and parallel market rates to ₦59, up from ₦35 previously.
Experts attribute the ongoing slide in the Naira’s value to a combination of global and domestic pressures. One major factor is the global market turbulence triggered by new trade tariffs announced by U.S. President Donald Trump, which have led to a sharp drop in crude oil prices Nigeria’s primary source of foreign exchange earnings.
In an attempt to stabilize the currency, the CBN intervened by injecting approximately $200 million into the foreign exchange market. However, the Naira continues to struggle against mounting demand pressures and speculative activities.
Despite these challenges, the CBN has reiterated its commitment to ensuring market stability and curbing further depreciation of the local currency.
